SINGAPORE - Viva Industrial Trust (VIT), a Singapore-focused business park and industrial property trust, said it raised the size of a private placement following strong demand from investors.
VIT said it received subscriptions exceeding its original offer size of $40 million, and as a result, exercised the upsize option to increase it to $63 million.
At 78.5 cents per new stapled security, a total of 80.3 million new stapled securities will be issued.
The private placement exercise opened to strong demand on June 4 and received firm support from both institutional and private investors, which enabled VIT to raise $63 million from investors in just two days, said the trust manager.
The net proceeds from the private placement exercise will be used to fund VIT's asset enhancement initiative (AEI) at Technopark@Chai Chee, which is expected to yield an incremental annual net property income of $9.8 million and a projected return on investment of 12.1 per cent per annum.
Mr Wilson Ang, chief executive of Viva Industrial Trust Management, the manager of Viva Industrial Real Estate Investment Trust, said he was pleased at the strong show of support for both the AEI project and VIT.
"This has conveyed a strong message on the market's positive perception of VIT's potential and will spur our team to even stronger performance," he said.
The new stapled securities are expected to commence trading on June 16.